According to a recent PwC report, the Indian hospitality sector is expected to witness growth over the next three years, with the branded hotel chains set to see a 50 percent growth in their capacities by 2022, on the back of rising demand hugely surpassing current supply. “The supply in Indian hospitality sector is growing at eight percent year-on-year. However, demand is growing at almost twice this rate,” the report said, adding that this is leading to more and more international chains and brands of existing chains being launched in India.
“Looking at the current spike in demand in the hospitality sector in India, we see potential for a major expansion in the sector, led by the branded chains,” commented Manpreet Singh Ahuja, Partner, PwC India.
Manpreet Singh said according to their latest study, branded hotel chains account for only 17 to 20 percent of the estimated $28 billion Indian hospitality market. “The share of the branded chains in India is expected to go up to 50 percent by 2022 from the existing level,” he said.